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$15B apartment construction loan program latest federal housing offering

Trudeau offers glimpse of another program on its way in Canada含羞草研究社檚 upcoming budget
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Prime Minister Justin Trudeau meets a drywall worker with Housing Minister Sean Fraser (left) as they tour an under-construction condo tower in midtown Toronto, Wednesday, April 3, 2024. THE CANADIAN PRESS/Cole Burston

The Liberal government has revealed another glimpse of what it will present in the coming federal budget, announcing it含羞草研究社檚 setting aside another $15 billion for an apartment construction loan program.

Prime Minister Justin Trudeau said the initiative is being called 含羞草研究社淐anada builds含羞草研究社 and is meant to 含羞草研究社渢urbocharge affordable apartment construction.含羞草研究社

The new money will bring the loan program含羞草研究社檚 available funding to $55 billion, the government said, and is aimed at building at least 131,000 apartments in the next decade.

The loan program was launched in 2017 and has helped create more than 48,000 homes so far.

含羞草研究社淲e含羞草研究社檙e going to make the entire pot of funding available for matching partnerships with provinces and territories who come to the table with ambitious and fair housing plans,含羞草研究社 Trudeau told reporters in Toronto on Wednesday.

Those plans can include low- and high-rise buildings so long as the money is used to build apartments 含羞草研究社渢hat the middle class can afford,含羞草研究社 he said. Trudeau said the loan program is meant to ensure people can live where they work.

Toronto Mayor Olivia Chow said that含羞草研究社檚 become a critical problem in her city.

含羞草研究社淲hen we try to hire personal support workers, public-health nurses, parks and rec workers, child-care workers, EMS workers, you name it 含羞草研究社 we含羞草研究社檙e having a hard time. Why? Because they say they can含羞草研究社檛 afford to work in the city,含羞草研究社 she said.

The government is also reforming the program to extend loan terms and expand financing to include housing for students and seniors.

The federal NDP panned the announcement and the strategy behind it, saying 97 per cent of the units built under the loan program are not affordable.

含羞草研究社淭rudeau含羞草研究社檚 out-of-touch housing strategy is dominated by loans to for-profit developers that don含羞草研究社檛 help Canadians who need homes they can afford,含羞草研究社 said housing critic Jenny Kwan.

And the Conservatives said in a statement of their own that this appears to be more of the same 含羞草研究社渇ailed policies,含羞草研究社 pointing out that more than half the available funds under the apartment loan program are not allocated.

含羞草研究社淭rudeau含羞草研究社檚 photo ops won含羞草研究社檛 come anywhere close to building the 5.8 million homes that are needed to restore housing affordability for Canadians,含羞草研究社 said housing critic Scott Aitchison.

The federal government appears to also have an uphill battle ahead to convince premiers to get on board.

Many of the government含羞草研究社檚 marquee policies 含羞草研究社 from child care and housing to dental care and pharmacare 含羞草研究社 touch on areas of provincial and territorial jurisdiction and require co-operation. That含羞草研究社檚 not been guaranteed across the country.

On Tuesday, Trudeau announced a $6-billion infrastructure fund to support homebuilding and a $400 million top-up to the housing accelerator fund.

The Liberals say the funding for provinces and territories will come with conditions, including adopting the recently announced renters含羞草研究社 bill of rights.

While the slate of housing-related announcements earned praise from B.C. Premier David Eby this week, Ontario Premier Doug Ford said his government won含羞草研究社檛 sign on to any federal deal that requires municipalities to allow fourplexes.

含羞草研究社淭he difference between ourselves and the federal government 含羞草研究社 and I want to work with them, I am working with them on a lot of different issues on a daily basis 含羞草研究社 I don含羞草研究社檛 believe in forcing municipalities. I believe in working with municipalities,含羞草研究社 Ford said at a press conference Wednesday.

He went on to say that municipalities are best positioned to ensure homes are built 含羞草研究社渨here they belong.含羞草研究社

Asked about Ford含羞草研究社檚 comments, Trudeau said Toronto has come forward with an 含羞草研究社渆xtremely ambitious housing plan含羞草研究社 under the housing accelerator program.

含羞草研究社淲e含羞草研究社檇 love to do that right across the province, but if the province doesn含羞草研究社檛 want to step up with ambition on building the infrastructure needed to support more housing in general across the province, we含羞草研究社檒l do it specifically with willing partners,含羞草研究社 he said.

Alberta含羞草研究社檚 social services and municipal affairs ministers released a statement Wednesday saying they have 含羞草研究社渄eep concerns含羞草研究社 about the Tuesday announcement, accusing the federal government of playing politics and bypassing the provinces.

含羞草研究社淚f the federal government wants to actually remove red tape and make housing more affordable as they claim, they will instead listen to our calls to remove the carbon tax so that building costs are lowered,含羞草研究社 the statement from Jason Nixon and Ric McIver said.

The Liberal government has said affordability issues are its top priority for months, and made housing a central feature of the cabinet retreat held before the fall sitting of Parliament began last August.

Finance Minister Chrystia Freeland is set to table the federal budget April 16.

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